Charitable Gift Annuities:

A way to help ACCC...and get paid for it!

By Kevin Cooper
Executive Director, Foundation

There are many ways to contribute financially to Anne Carlsen Center for Children and preserve or enhance your personal income. Establishing a Charitable Gift Annuity (CGA), which ACCC has been providing donors since the early 1940s, is one.

Just what is a Charitable Gift Annuity?

In a nutshell, to establish a charitable gift annuity, a donor agrees to donate cash, stock or other assets of $5,000 or more to ACCC. In return, the donor receives a fixed payment, called an annuity, for the remainder of his or her life plus tax benefits. There are significant benefits to establishing a gift annuity with ACCC.

Why choose a Charitable Gift Annuity?

Low interest rates and swings in the stock market are causing people to think twice about their financial decisions, and consider the many benefits of a gift annuity.

Attractive Rates
When you compare the gift annuity rates with what you might receive from a certificate of deposit you will likely be pleasantly surprised. For example, the rate for a 70-year-old is 7.2 percent. At age 80, the standard rate is 8 percent and if you are 90 or older, you would receive 11.3 percent. A $50,000 gift annuity would provide a $4,600 annual income for an 80-year-old person. Rates are slightly lower when the annuity is for two people.

Regular Payments
You decide how often you want to receive payments. Many people receive their checks every quarter but annual or semi-annual and even monthly payments are possible. Whatever you choose, receiving regular payments on a specific date is helpful for planning purposes.

Fixed Income
The payment rate will be locked in at the time you obtain a gift annuity. It will not rise or fall with the economy. Instead, it will be the same amount every year—and that can mean a lot in uncertain times.

Lifetime Benefit
Gift annuities are for life. No matter your age when you obtain the gift annuity or how long you live, your payments will continue right to the very end. If you have a two-life gift annuity, when one person dies, the other will continue to receive the same amount for the rest of his or her life.

Dependable Source
ACCC stands behind its gift annuities by establishing a reserve fund to meet gift annuity obligations. Further, ACCC backs its annuity obligations with its full financial assets. You can feel safe and secure and have confidence that your payments will continue without fail.

Relief From Taxes
Since part of the contribution for a gift annuity is considered by the IRS to be a charitable gift, you will receive an income tax deduction you can use in the year you start the annuity if you itemize deductions. During your life expectancy, you will be able to claim much of the annuity payment as tax-free income.

It’s Simple
Obtaining a gift annuity from ACCC is easier than you might think. You will be given a customized illustration to see how one works with your age and contribution amount included. You’ll also receive materials you can share with family and trusted advisors.

Helping Children with Special Needs
Another benefit is the satisfaction you will receive from making a gift to help the children at ACCC. Every time you receive a payment, you’ll be reminded that your gift annuity will eventually benefit the precious gems at Anne Carlsen Center for Children.

To learn more about this opportunity, feel free to contact the Anne Carlsen Center for Children Foundation office at 1-800-568-5175, or fill the response card enclosed in this issue of The Ambassador and drop it in the mail. A member of the Foundation staff will contact you.

Couple finds satisfaction with annuity gift

Rolph and Esther Erickson of Michigan, N.D., started to support Anne Carlsen Center for Children by giving memorial gifts. They had long admired namesake Dr. Anne Carlsen and her personal accomplishments.

They took time to tour and that’s when they began contributing. "We are very thankful there’s such a great place for many children that need these services, " they say.

A recent visit with Planned Giving Officer Julie Huso resulted in their decision to arrange a charitable gift annuity with ACCC. It is the first charitable gift annuity they have done.

It is a good fit for them, they say, for three reasons.

"Our main thought was helping ACCC and knowing that when we pass, the Center can use the money. It provides us with an income and interest rate that’s higher than we could get at the bank, and the tax break has helped. " The tax benefit, they said, was an unexpected benefit.

The Ericksons, have been married for 66 years and have three children. They encourage others to consider this gift option. "A charitable gift annuity gives you so much satisfaction. We like the idea of the income stream and that we’re helping such a great place. "

They discussed their decision to establish the annuity with their children. "They were very supportive and thought it was a great idea, " they said.